Risk factor
Poor trading liquidity
Profitability factor
Excellent dividends
About
Managed by Strathbridge Asset Management Inc., Premium Income Corporation is a Canadian equity mutual fund that primarily focuses its investments on the public stock markets within Canada, specifically targeting the banking industry. This fund strategically utilizes financial derivatives, such as call and put options, to secure holdings in major Canadian banks including Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, and Toronto Dominion Bank. A core objective is to invest in enterprises that distribute dividends. Established on August 27, 1996, this Canadian-domiciled fund assesses its performance by benchmarking against the S&P/TSX Diversified Banks Total Return Index.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD.